Confidential in accordance
with Section 10A(2)(c),(d)(i) of the Local Government Act as it contains
information that would, if disclosed, confer a commercial advantage on a person
with whom the Council is conducting (or proposes to conduct) business, and
commercial information of a confidential nature that would, if disclosed
prejudice the commercial position of the person who supplied it.

ATT15 GM19/18 CONFIDENTIAL
Property Valuation Summaries

Executive Summary

This report
has been prepared to enable Council to consider progression of the Cultural and
Civic Space (CCS) Project to detailed design and construction. Over the
2018/19 year, the following key activities have been undertaken:

1. Schematic
Design to develop the exterior form of the building, the layout of functional
areas within the building (library, gallery, museum, café,
administration office, etc) and to start the engineering design of the
structure and services within the building;

2. Drafting
of development application documentation for the State Significant Development
process;

3. Refinement
of the project cost estimate based on Schematic Design; and

4. Continued
engagement of internal and external stakeholders.

In summary,
those key activities have resulted in the following:

1. A
Schematic Design that satisfies the design brief provided by Council to BVN
Architecture and the design team;

2. Development
application documentation prepared by planners, GeoLINK, and ready for
submission to the Department of Planning & Environment;

3. A
cost estimate for the project developed by quantity surveyors, Slattery, that
is within Council’s project budget expectations of $76.52m (as
established at the Council meeting of 14 June 2018);

4. A Schematic Design campaign in May 2019 that resulted in 78
written submissions. Overall written feedback was 51% positive and
supportive of the project, 23% neutral, suggestions or unrelated & 26%
opposed to the project in part or its entirety.

5. Refinement of the procurement approach for Design &
Construction with 2 stage early contractor engagement.

Recommendation:

That Council Authorise progression of the Cultural
& Civic Space Project to detailed design and construction including:

1. Approval
of full project funding at $76,520,000 with expenditure expected between
2018/19 and 2022/23;

2. Noting
that a development application will be lodged which is categorised as State
Significant Development under section 4.36 of the Environmental Planning and
Assessment Act, 1979;

3. Authorising
the disposal of the following properties through an expression of interest
process and for a sale price of no less than the independent valuation less
10%:

· Trigger mixed
use analysis including Council offices consistent with CBD master plan

11 May

2017

· Scope
of the Cultural and Civic Space project to include a new central library,
regional gallery, customer service area, Council Chambers and Council staff
office accommodation

· Regional
Museum and other Council assets to be considered

· Adoption of the
Library/Gallery Precinct Analysis and updates to the City Centre Masterplan accordingly

14 June

2018

· Progress the Cultural and Civic Space project
to its next design phase, Schematic Design, and include the Museum in scope

· Project budget established at $76.52m

· Resources to be applied to expedite the
project

13 September 2018

· Establish
$2m budget (as part of the $76.52m budget) to expedite the project and
complete Schematic Design within the 2018/19 year

· Endorsement
of method of procurement “Construction Management with 2 Stage Early
Contractor Involvement” for the building contractor

· Note
that commitment of full project funds by Council would be required once
Schematic Design is completed and before the Development Application is
submitted

· Note
that the method of procurement facilitates timing of Council asset sales

· Endorse the
pursuit of grant opportunities to offset project costs

Issues:

Project
Status and Performance

The project
is progressing within Council’s project budget expectations of $76.52m
and is forecast to continue to do so.

The
Schematic Design phase of the project has been undertaken during the 2018/19
year within the approved $2m funding allocation and has delivered all of the
material required to enable Council to make an informed decision about
progression of the project. There has been no expenditure of contingency
funds to-date. The table below shows a summary of 2018/19 committed
contracts and expenditure.

Consultant
Fees

$1,835,420

Collateral,
media & Project Office

$141,756

Total

$1,977,176

It should be
noted that the $1,977,176 expenditure in 2018/19 is part of the overall
expected spend of $76.52M.

The
Schematic Design phase has taken 2 months longer than forecast when Council
last considered the project (Council meeting 13 September 2018), primarily due
to time taken to procure the services of over 20 consultancies. It should
be noted that should this report be considered in the affirmative, the forecast
completion of this project is delayed a few months with a forecast to commence
demolition / early works in January 2020, commence construction in May 2020 and
complete construction mid 2022. (Attachment 11)

Schematic Design Summary

This summary
covers the work of BVN Architecture in terms of their dual role as Architect
and as Lead Design Consultant (LDC). BVN has designed the building to
satisfy the brief from Council and, as LDC, has coordinated the design inputs
of a multitude of specialist design firms. The Schematic Design body of
work is summarised below.

All
Welcome has been adopted by the design team as a working name for the
building and is used throughout this report. The working name
encapsulates the design themes and principles of the project.

Architect
Summary. The building design has satisfied the design brief specified
by Council. The design has been exhibited to the community and is covered
at a high level in BVN’s summary report (Attachment 1) and detailed in
BVN’s Schematic Design report (Attachment 2) and floor plans (Attachments
3 to 10). Community feedback is addressed in the Consultation section of
this Council Report.

Building
Services & Sustainability. LCI Consultants have completed the
schematic designs for All Welcome’s mechanical, electrical, IT &
communications, vertical transport, hydraulic, and fire protection
services. Notwithstanding a small number of outstanding items, the design
is coordinated to a schematic design standard with the other design
disciplines. The following items are yet to be captured in the services
design and require investigation at the next stage:

· A number of
areas have been identified which suit the incorporation of passive ventilation
using operable windows.

· Strategies
around compliance of the building envelope with energy efficiency regulations.

· Specification
of services components to suit exposed services (i.e. no ceilings) throughout
the building.

The All
Welcome Cultural and Civic Space development has been designed to incorporate a
number of Ecologically Sustainable Design (ESD) initiatives which have been
selected to meet or contribute towards the objectives of Council’s
Sustainability Policy.

NABERS
definition: “The NABERS Energy for offices rating is a national rating
system that measures building performance on a scale of zero to six
stars. A zero-star rating means the building is performing well below
average and has lots of scope for improvement. A six-star rating
indicates a market leading performance, with half the greenhouse gas emissions
or water use of a five-star building”.

The proposed development is not able
to source all its energy from renewable technologies. However, it will
include energy efficient building services and an on-site solar panel array to
reduce its carbon footprint. A selection of these strategies includes:

· 140kW of
solar panels on the roof generating approximately 190,000 kWh and reducing
energy consumption by approximately 18%.

· High
performance façade incorporating the increased stringent measures of the
2019 Building Code of Australia (BCA) Section J.

· Low energy
air conditioning system incorporating the following features:

o Air handling systems matched
to thermal and operational zones.

o Low velocity high efficiency
handling plant.

o Variable speed drive chillers,
fans, and pumps to match the capacity with the load.

· The
buildings heating hot water requirements shall be met by way of a series of
high-efficient air to water heat pumps boosted with the heat collected by solar
panels.

· Provision of
power factor correction to reduce building maximum demand and energy
consumption from the grid.

· Inclusion of
photoelectric sensors to automatically control external lighting around the
building.

· Provision of
energy efficient LED lighting throughout.

· Use of
motion sensors for back of house areas and carpark to automatically switch
luminaires off after a period of inactivity.

· Provision of
digital power meters for lighting, power, photovoltaics and mechanical
equipment to meet NABERS requirements. All digital power meters will
interface with building management system to cater for energy consumption
monitoring within the building.

· Photoelectric
cells to perimeter zones for daylight harvesting.

Based on this array of energy
efficiency strategies and the proposed solar panel installation, which are
currently allowed for within the Cost Plan, it is anticipated the building
should be capable of performing with an equivalent NABERS energy rating of 6.0
Stars. Currently the cost of certification ($15-25k) is not included in
the current budget. It is assumed that monthly and annual monitoring would be
undertaken by ongoing Council operations.

The proposed development seeks to
minimise greenhouse gas emissions produced by transport to and from the site by
providing staff bicycle parking and end-of-trip facilities to encourage
cyclists.

A selection of these strategies
includes:

· 60 bicycle rails for
visitors,

· 40 bicycle spaces for
staff / employees,

· End-of-trips facilities,
and

· Pick-up / drop-off area
for light vehicles and buses/coaches along the Gordon Street frontage.

4. Local
and Sustainable Materials – Maximising the use of sustainable and
healthy products, such as those with low embodied energy, locally sourced, and
made from renewable or recycled resources.

Materials will be sought from
regional suppliers to minimise the carbon footprint from transportation.
Where possible timber with Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC) certification will be sourced. Use of PVC and
steel will be minimised and have proof of being responsibly sourced or having a
sustainable supply chain.

The design of the building does not
directly ensure local procurement and growth of sustainable food sources.
However, as a community civic facility, the development provides a space to
educate and promote local groups or events involved with sustainable food
production.

6. Sustainable
Water - Use water efficiently in all buildings and operations. Designing to
avoid local issues such as flooding, drought and water course pollution.

Demand from the local potable water
utility is reduced through the provision of the following strategies:

· High Australian Water
Efficiency Labelling and Standards (WELS) equivalent fixtures and fitting
selections.

· Water metering and
monitoring for each floor level, rainwater tank, mechanical plant and hot water
plant.

· All water sub-meters are
connected to the building management system.

7. Land
Use and Biodiversity - Protect and restore biodiversity and natural
habitats through appropriate land use management and planning.

The project will be constructed on a
previously developed site which has a large fig tree directly adjacent to the
site. The fig tree will remain and will be a focal point from which the
building form of the development will follow. As a result, the project
has minimal impact to the surrounding biodiversity and ecological integrity.

The project has an indirect impact
to conserve biodiversity and ecological integrity to the surrounding
area. By minimising demand on energy and water resources, the need for
land-clearing and the pollution generated from new utility infrastructure to
support the surrounding area will be minimised.

8. Culture
and Community - Respect and revive local identity, wisdom and culture;
encouraging the involvement of people in shaping their community and creating a
new culture of sustainability.

The development will be a civic
space which provides a gathering point for the community through its library,
museum, gallery, café, and meeting spaces. As a local government
building that aims to meet the objectives of Council’s Sustainability
Policy, it encourages other developments to incorporate sustainable design
outcomes through example.

9. Equity
and Local Economy - Create bioregional economies that support equity and
diverse local employment and international fair trade.

The construction of the building
will provide employment opportunities to local trades, consultants and
contractors who support local businesses. When in operation, building
occupants will continue to support local businesses estimated to add $2m
annually to the Gross Regional Product, reinvigorate the CBD and generate
direct and indirect employment.

The proposed building design and
services deliver comfort to occupants while minimising energy and potable water
consumption. The supply of higher than the minimum requirement of outdoor
air to the occupied spaces and the use of low Volatile
Organic Compounds and formaldehyde emitting materials ensures that sick
building syndrome is minimised for the benefit of occupancy health.

Fire
Engineering. LCI Consultants have completed a preliminary fire safety
strategy document, which outlines the objectives and the process involved in
working through the detail of engineered fire safety solutions which are
required to have parts of the design certified. Key takeaways from this
include that the atrium shall be sprinklered and be smoke-separated from the
internal areas that surround it. The opening in the level 3 slab provides
for smoke exhaust from this area in case of fire.

Landscape.
Landscape is integral to the experience of All Welcome, and Urbis have worked
collaboratively with BVN on the design of external areas outside the site
boundary, ground floor and the open area at level 3. Key components of
the landscape design include:

· Paving at
ground floor incorporating a motif derived from the fig tree.

· Selection of
Ficus (fig tree) species in the atrium consistent with this character.

· Greenery to
roof area fulfilling the vision for an elevated public space.

Arborist.
Advice on working adjacent to and protecting the existing Hill’s Weeping
Fig in Riding Lane has been captured by Arborist Network, with the impact on
both the tree and the building being negligible due to the contained area of
impact on the tree’s root zone. They note that managed well, the
proposed works have the potential to result in an improvement in the
tree’s health and longevity.

Access
& Building Code of Australia (BCA). Philip Chun have completed a
report including a review of documents, comments and recommendations with
respect to the Building Code of Australia and Disability Discrimination Act
legislature. There are a range of items picked up in the compliance
reports which will be addressed at the next stage.

Façade.
Surface Design consultancy provided design advice on the façade and this
has been incorporated into the design team’s deliverables. The
facade of the building is primarily glass with vertical sunshades.
Significant discrete inputs into the design are as follows:

· The
preferred construction type for the main façade is a prefabricated,
unitised curtain wall with the terracotta portions attached before
installation.

Traffic
& Parking. Ason Group have undertaken a traffic and parking study
for the project.

The
objectives of Ason’s study were to:

· To provide
appropriate input to the State Significant Development Application;

· To
demonstrate that there is an appropriate and sustainable provision of car and
bicycle parking;

· To establish
that the forecast trip generation can be appropriately accommodated by the
local and arterial road network; and

· To
demonstrate that the proposed access driveways, internal roads, car parks and
service facilities comply with the relevant Australian Standards.

The above objectives
have been achieved. In summary:

· Car parking
requirements (i.e. supply and demand) have been modelled out to 10 years after
opening of the facility and demand is satisfied by the proposed supply of
basement car parking and capacity in the public carpark network surrounding the
site;

· The analysis
assesses the net impact of the proposed development noting that the Proposal
relocates a number of land uses within the immediate vicinity to the Site, and
as such, there would be no material change to the surrounding road network; and

· The site
access, car park and loading areas have been designed to comply with the
relevant Australian Standards (AS2890 series).

Waste.
Waste equipment manufacturer Elephants Foot have completed a study estimating
waste volumes to be generated, and provided advice on bin room size and
configuration based on a likely collection schedule. The Bin Room at
ground level is suitable to cater for the number of bins required - noting that
Council’s collection schedule is less frequent than preferred by the
Waste Management Plan - and that this would result in the bin room being
compromised functionally or needing to be made larger. Review and
engagement is required at the next stage to confirm the collection schedule,
bin room size and layout.

Flood
Engineering. The Flooding Assessment Report, completed by GHD,
details the likelihood of flooding in the area and the impact of flooding on
the All Welcome site as well as the impact that the development has on flooding
in the surrounding area. The modelling shows that the site is not inundated
during a 1 in 500 year flood event. The direct impacts on the building
design which have come out of this study are the levels for the ground floor
and carpark entry, which have been incorporated in accordance with GHD’s
advice.

Structural
& Civil Engineering. Engineers TTW are responsible for the
structural and civil design. Key aspects of the structural scheme are as
follows:

At the next
stage, the use of metal deck permanent formwork system suitable for exposed
soffit design (no ceilings) needs to be considered.

Wind.
Windtech completed a Pedestrian Environment study looking at occupant comfort
at Ground Level and at Level 3 in the open area. The study recommends
retaining the existing Fig Tree in Riding Lane and including new planting to
Gordon St to ameliorate potential unfavourable wind conditions in these areas,
which includes the external café seating and external amphitheatre
seating at level 3. The landscape design by Urbis & BVN is in
accordance with this advice.

Acoustic.
Pulse Acoustic provided an Environmental Impact Statement Report, particularly
into the effects on local residential and recreation sites. To do this,
they installed noise loggers within the site and the closest residential
facilities. The conclusion was that subject to implementation of their
recommendations, the project will be in compliance with the relevant statutory
criterions.

Geotechnical
assessment. Regional Geotechnical Services’ (RGS) advice
provided design criteria to the structural engineers to inform the basement
retention system and pile specification. RGS also developed a preliminary
Acid Sulphate Soil Management Plan to enable cost estimating by Council and
Slattery regarding soil dug out of the site for the basement car park and
building footings.

Other
Specialist Consultancies

Project
Management. Turner & Townsend Thinc (T&TT) have provided
external project management services during the schematic design phase to
ensure Council’s objectives and brief for the project are met. This
included project strategy involving procurement of a full design consultant
team primarily based in Sydney, with fortnightly trips to work face to face
with Council on various consultant and design elements of this complex brief.

T&TT
have been responsible for the sequencing of delegated consultant work,
monitoring progress of the master program, and management of project risk to
deliver on the consultant team’s remit of schematic design and authority
approval documentation. This work has been developed in liaison with
Council for submission of co-ordinated consultant documents within Councils
approved Project Budget of $76.52m by the end of June 2019.

Method of
procurement review. As the schematic design phase has progressed and
more information surrounding the project has developed, T&TT have lead the
review of the proposed procurement strategy for the project’s builder and
have workshopped with Council on the risks associated. T&TT’s
recommendation to Council is a Design & Construction with 2 Stage Early
Contractor Engagement Procurement Model (2-stage D&C).

The 2-stage
D&C procurement model is arranged in a manner which separates the Preferred
Tenderer’s ‘Management Fee’ Offer (Preliminaries, Overheads
& Margin) from the Trade Costs, and is structured around the tenderers
providing a ‘Target Cost Plan’ for the overall project.

Upon
establishment of key trade package costs, this model will require the Preferred
Contractor to convert their price to a Fixed D&C price offering within a
fixed timeframe (around April 2020 subject to SSD approval). Should this
not be achieved, all design development and documentation reverts to Council
with the option to go back to market for a traditional lump sum D&C tender
process.

At the point
of conversion (Fixed D&C price offering) the design team are novated to the
control of the Contractor to finalise design documentation, resolve outstanding
design details and document for Construction (as opposed to document for
brief).

· ECI ensures
good advice in terms of constructability and market knowledge which can be used
to inform the design;

· Council can
maintain input/control of the design throughout stage 1 (Pre-Contract Developed
Design Phase) without the risk of incurring large cost penalties normally
associated with Fixed Lump Sum contracts;

· The
Preferred Contractor’s (i.e. builder’s) preliminaries, overheads
and margin are fixed which provides motivation for the contractor carrying the
risk of time; and

· Award of
Contract at Stage 2 leads to risk transfer to the builder and greater cost and
time assurance for Council.

Planning.
GeoLINK have delivered the development application in draft, ready for
submission to the Department of Planning and Environment.

Quantity
Surveying. Slattery have estimated the full project cost (i.e. Total
End Cost) based on the Schematic Design. The Total End Cost of Cost Plan
No.5 Rev 1 is $76,519,404 (exc. GST) which is within established project budget
expectations. The Cost Plan includes a design contingency of 5.0% for
resolution of design items prior to the builder’s tender. Also included
is a contract contingency of 10.0% for the construction phase of the
project. These contingencies are intended for design documentation issues
and are not for changes in scope. The Cost Plan document is commercially
sensitive regarding further tendering for consultants and the builder, so is
attached but Confidential (Attachment 14).

The Slattery
Cost Plan has been peer reviewed by the quantity surveyors at Turner &
Townsend and they “are of the opinion that the current Slattery's cost
plan is within an acceptable range, however would note key specific items for
enquiry at the next phase of the project, as outlined within the body of this
report (sic T&T peer review report).”

Workplace
Strategy. Calder Consultants (Calder) were engaged in December 2018
to develop a workplace strategy for Council. Since February stakeholder
engagement has continued regarding the future workplace and the project
architect, BVN Architecture, has undertaken Schematic Design incorporating
Calder’s findings. Insights from post-February work are included in
this summary.

Current
Council office accommodation presents a range of challenges including:

· Lack of
meeting spaces – closable rooms of various sizes for private/confidential
meetings and appropriate areas for non-confidential meetings

· Lack of
quiet areas for uninterrupted, concentrated solo work without disruption from
other staff and customers

· Lack of team
and project work areas that don’t interrupt other staff and customers and
enable collateral to remain in place over the course of a project

The
workplace strategy is to implement a hybrid, team-based neighbourhood
model. The future workplace is predicted to comprise a variety of
desk-based (1 desk per person), hybrid (internally mobile, working anywhere in
the office and site) and flexi (externally mobile, working from other sites)
with very few dedicated offices. The neighbourhood model loosely
allocates zones within the workspace to staff groups.

Calder
recommended a split of 20% 1 desk per person and 80% hybrid / flexi could be
achieved as a first-pass noting that this is dependent on the ability for the
groups to digitise work processes, embrace flexible working, adapt to new
mobile technology, and a significant change management investment. The
workplace will be designed to be flexible from day 1 and over time.
Flexibility is to ensure that the day 1 workforce is catered for and that a
variety of workplace configurations can be implemented over time.

Options:

1. Adopt
the recommendations of this report.

2. Reject
the recommendations of the report such that the project is not progressed and
the current situation regarding Council’s cultural and civic assets is
unchanged.

3. Change
the scope of the project, noting that the time (9 months) and expenditure ($2m)
invested on Schematic Design and Development Application preparation last
financial year would be compromised.

OR

Change the scope of the project,
noting that additional expenditure on Schematic Design and preparing a
Development Application would be required and the project would be delayed.

Sustainability Assessment:

• Environment

The building design is developing to
respond to the unique environmental conditions of the Coffs Harbour region by
implementing low embodied energy construction systems and materials. It
aims to minimise energy use and harness the climate to improve the quality of
spaces through passive and active solar and system design. Sustainability
of the people is equally important - the physical space shall support the
health and well-being of the occupants, encourage them to thrive, and be a
catalyst for them reaching purpose and potential. The building will
target a wide range of sustainability initiatives to align with Council’s
Sustainability Policy. The Building Services & Sustainability section
above provides a detailed analysis.

• Social

A range of community and cultural
benefits will flow from the development including a vibrant cultural hub,
improved literacy, educational and lifelong learning, improved social and
wellbeing outcomes, increased exhibition spaces and programs, increased visitor
numbers and a variety of cultural facilities and spaces that don’t exist
today.

The CCS Project Concept Business Case
projected that the annual visitation to these facilities by Year 5
post-construction to be around 412,000.

• Civic
Leadership

Civic leadership is shown through
the ongoing implementation of MyCoffs Community Strategic Plan. Council
sees an opportunity to match the needs of our growing population, civic
leadership and to add value to the city as an urban renewal opportunity and a
cultural, community, business and visitor destination.

• Economic
– Broader Economic Implications

An independent economic assessment
identified a host of benefits to the CBD including a variety of financial
benefits over a 30 year period totalling $57m, 31 on-going jobs and an extra
$2m per annum Gross Regional Product.

• Economic
- Delivery Program/Operational Plan Implications

Funding for and affordability of
the project

Financial modelling shows that the
Council is in a strong financial position to undertake the project and that the
project only has a short term impact on the financial performance ratio of the
Council. Under Council’s current Long Term Financial Plan, Council
was due to have a positive operating performance ratio in the 2020/21 financial
year however the Council forward estimates have already provided for a positive
operating performance ratio in the 2019/20 financial year and the ratio remains
positive for the whole of the forward estimates with the inclusion of the
project.

Funding for construction of the
project is proposed to be sourced from three different sources. The first
is through the utilisation of the T2S Reserve for a total of $10.5million.

The second is through the sale of
four assets being Rigby House, the Castle Street Administration Building, the
Rose Avenue Commercial Offices and the Museum. Independent valuations
place the combined value of these buildings at approximately $20million.
The signed valuation page from the independent valuation reports by Savills
Valuations Pty Ltd for each of the above assets are Attachment 15
(Confidential).

The Local Government Act 1993 is
clear on the sale of land as follows:

Section 377

(1) A
council may, by resolution, delegate to the general manager or any other person
or body (not including another employee of the council) any of the functions of
the council under this or any other Act, other than the following:

(h) the compulsory acquisition, purchase, sale, exchange or
surrender of any land or other property (but not including the sale of items of
plant or equipment).

The Council’s Disposal of Assets Policy states,
“In the case of items with a disposal value of $150,000 or above
the requirements of section 55 of the Local Government Act 1993 apply.”
The expressions of interest process, which is recommended to the Council, will
be carried out in accordance with Section 55 of the Local Government Act 1993.

It is also recommended
that the sale price be no less than the independent valuation less 10%. This
allows the General Manager to have a level of discretion in negotiating the
sale of the properties and is line with previous land sales conducted by
Council, such as 36 Gordon Street, Coffs Harbour.

The third
funding source is loan borrowings. To complete the $76.52million
construction project the Council would need to borrow $46.02million. At
this time, the modelling has not included the inclusion of any grant funding.
Should the project receive any grant funding, then this grant funding would
reduce the amount of the proposed borrowing. The Council is well within
the Debt Service Ratio target as set by the Office of Local Government and the
additional borrowing outlined within the report would still leave the Council
within the target.

During the
construction period of the building, the financial model does show an increase
in cash flow requirements due to increased operational costs around the rent
required to be paid for current buildings after their sale and debt
servicing. For this reason, in the 2020/21 and 2021/22 financial years
the money usually allocated to the T2S reserve will be required to be utilised
on other capital works within the community. The allocation into the T2S
reserve would recommence in the 2022/23 financial year.

$5.158million is
allocated in the 2019/20 budget to progress the project.

Risk Analysis:

A risk
register is maintained between Council’s Project Office and the external
Project Manager, Turner & Townsend Thinc. The key risks below are
extracted from that register.

Key Risks

Ref

Risk

Mitigation

Owner

1

State Significant Development Approval is delayed
incurring a delay in Stage 2 D&C Contract Award in Q2 2020.

Stage 1 award of ‘Preferred Contractor’
allows early contractor involvement in 2019. Demolition works are separated
from the SSD application to enable the works to be undertaken in Q1 2020.

Council

2

The Department of Planning and Environment may request
Council provide information on the concurrent Riding Lane Upgrade project
during the SSD approval period. A delay in responding may delay approval.

Council to align programmes to mitigate risk of delay to
All Welcome SSD.

A sensitivity analysis was conducted regarding
Council’s operating performance ratio (OPR) & debt serviceability
impact if the sales realised only 50% of valuations. Modelling shows
that OPR return to positive would be pushed back a year and the debt would
increase $10m but remain be serviceable without special rate increase.

Council

4

Risk that the Office of Local Government (OLG) advises
against the project upon receipt of the Capital Expenditure Review, resulting
in the project being abandoned.

Capital Expenditure Report to be written to OLG
standards

Council

5

Latent conditions in the ground such as contamination,
unmarked services, buried asbestos causing additional time and cost.

A contamination report has been provided to Council
reporting a presence of heavy metals and acid sulphate soils. An acid
sulphate soil management plan and de-watering recommendations outline
contractor requirements and have been included in Slattery's Cost Plan.
Further testing is required following removal of ground slab, note in-ground
asbestos has not yet been ruled out as this requires the removal of ground
slab.

Council

To further enable mitigation of the risks and to ensure good
governance for the Project, a Project Board was established. This Board is
chaired by the General Manager and has met formally on a regular basis over the
last nine months to consider Project Status Reports and review the status of
the risk register. The Project Board also undertook the role of value managing
the project aspects to ensure the outcomes delivered on the Project Brief and
remained within the allocated budget.

Consultation:

Extensive community and staff engagement was
conducted from September 2018 to June 2019. Additionally, targeted stakeholder
consultation was undertaken to further inform the design of the building.
Throughout the process the Library and Gallery Planning Advisory Group (LGPAG)
have remained closely engaged as the formal community advisory group.

There were many avenues for the community to be
informed of the design (print and radio media, newsletters, information stands,
meetings and forums, rate notice information and much more) and provide
comment. Ten targeted groups were identified for more detailed
consultation and engagement including Migrants, people experiencing
homelessness, Youth and Indigenous. Many of these groups were engaged on multiple
occasions throughout the Schematic Design phase.

At the
public release of the Schematic Design, feedback was open from 10 – 31
May 2019. Extensive promotion was conducted that enabled written feedback
to be provided through a range of platforms. 78 written feedback
submissions were received. Overall written feedback was 51% positive and
supportive of the project, 23% neutral, suggestions or unrelated and 26%
opposed to the project in part or its entirety. After extensive communication
and engagement, a limited amount of written feedback was received. it
should be noted that a percentage of the negative feedback was in respect to
there being no performance space in the Cultural and Civic space project. As
council is aware, the performance space was intentionally separated from this
project at the outset and is the subject of a separate body of work. For
further details, refer Attachments 12 & 13.

Related Policy, Precedents
and / or Statutory Requirements:

Enabling of
strategic outcomes:

· MyCoffs
Community Strategic Plan

· The City
Centre Master Plan 2031 and its desired outcomes are enabled in part by
this project through activation of the Gordon St site and freeing up of the 2
Castle St site for future activation.

In the 9
months since the Resolution 2018/197 was made, Schematic Design and drafting of
development application (DA) documentation have been completed. This
report provides Council with the opportunity to approve progression of the
project to detailed design and construction.

The purpose of policy is to document Council’s intent,
commitment and/or a position on a particular topic as well as ensure
transparency and accountability in local government. This report presents
the amended Submissions Policy for adoption.

Recommendation:

That Council adopt the amended Submissions Policy.

Report

Description of Item:

The purpose of policy is to document Council’s intent,
commitment and/or a position on a particular topic as well as ensure
transparency and accountability in local government.

Policy
Name

Policy
detail

Submissions
Policy

Coffs Harbour City Council
welcomes submissions from members of the community and industry stakeholders
as this feedback is critical in Council’s achievement of informed and
transparent decision making. The purpose of this policy is to assist those
making a submission and ensure that Council’s consideration of
submissions is fair and consistent.

This policy has been amended to
provide details on how Council receives and manages petitions.

Issues:

There are no
issues associated with this report.

Options:

It is considered that the following options are available to
Council:

1. Adopt
the recommendation provided to Council.

2. Amend
the recommendation or policy provided to Council and then adopt.

3. Reject
the amended policy provided to Council meaning that the current policy without
amendment will remain in place.

Sustainability Assessment:

• Environment

There are no environmental issues
associated with this report.

• Social

Policies are an important
communication tool used by Council for providing our community and general
public detail on strategic aims, commitments and obligations.

• Civic
Leadership

Policies are important for ensuring
transparency and accountability in local government. Their implementation
enables Council to identify and respond to the community. This is
consistent with the MyCoffs Community Strategic Plan strategy D.1 Our leaders
give us confidence in the future.

• Economic
– Broader Economic Implications

There are no broad economic impacts
associated with the implementation of the recommendations.

• Economic
- Delivery Program/Operational Plan Implications

The ongoing development and review
of Council policies and plans are accommodated within Council’s budget
structure. This expenditure is monitored through Council’s monthly
and quarterly budget reviews.

Risk Analysis:

There were
no significant risks identified in the adoption of this policy.

Consultation:

Internal
stakeholders were consulted with the drafting of this policy.

Councillor Arkan has given notice of his/her intention
to move the following:

"That Coffs Harbour City Council consider updating
the executive cars to substainable technology vehicles, e.g Electric
Vehicles, in line with Rationale Providing leadership in our strategic plans
is vital."

Rationale:

“Technology
is available for vehicles to be run in sustainable way. They are cost effective
and environmentally essential. With charging stations and associated
infustructure becoming readily available council could take a positive step and
lead the way with initial transformation of the executive fleet.

I note there
way be possible future subsidies available to councils in the near future for
taking this important step.

The
availability of charge stations and related support , will need to also be
provided.”

Staff Comment:

Considering
the addition of electric vehicles into the Council fleet has merit,
particluarly if this occurs for vehicles where the most benefit is derived. It
is important for all environmental and financial factors to be taken into
consideration and it therefore recommended that a report be prepared for
Council to provide all the relevant information before a decision is made.

“Could
council please provide an update on the position on eliminating extreme odour
levels that intermittently come from the Englands Road Biomass treatment
facility?”

Response

The New South Wales Environmental Protection Authority (EPA)
are the controlling body administering the Protection of the Envirommental
Operations Act 1997 (POEO Act).

Biomass Solutions (Coffs Harbour) Pty Ltd undertake a
scheduled activity for waste management which requires the company to operate
in compliance with an Environmental Protection Licence (EPL) in accordance with
the POEO Act.

In March 2017, in response to complaints received which
related to offensive odours, the EPA issued to Biomass a Notice of Preventative
Action under the EPL. This notice required Biomass to undertake actions to
mitigate the emission of offensive odours.

Council is aware that the EPA and Biomass are continuing to
work through the actions to eliminate odour emissions.